Message to the Congress Reporting on the Economic Sanctions Against South Africa

September 25, 1986

To the Congress of the United States:

On September 9, 1985, in Executive Order 12532, I declared a national emergency to deal with the threat posed by the policies and actions of the Government of South Africa to the foreign policy and economy of the United States. Those actions and policies continue to pose an unusual and extraordinary threat to the foreign policy and economy of the United States, and in accordance with Section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I continued the national emergency with respect to South Africa on September 4, 1986. Pursuant to Section 204(c) of the International Emergency Economic Powers Act (50 U.S.C. 1703(c)), I am today reporting on the developments since my last report of March 17, 1986.

In Executive Order 12532, I prohibited: (1) the making or approval of bank loans to the South African Government, with certain narrow exceptions; (2) the export of computers and related goods and technology to certain government agencies and any apartheid-enforcing entity of the South African Government; (3) nuclear exports to South Africa and related transactions, with certain narrow exceptions; (4) the import into the United States of arms, ammunition, or military vehicles produced in South Africa; and (5) the extension of export marketing support to U.S. firms employing at least twenty-five persons in South Africa that do not adhere to certain fair labor standards.

In addition, I called for (6) consultations with other parties to the General Agreement on Tariffs and Trade with a view toward adopting a prohibition on the import of Krugerrands; (7) the completion of a report on the feasibility of minting U.S. gold coins; (8) an increase in the amount provided for scholarships in South Africa to victims of apartheid and an increase in the amount allocated for South Africa in the Human Rights Fund; and (9) the establishment of an Advisory Committee to provide recommendations on measures to encourage peaceful change in South Africa.

Executive Order 12535 of October 1, 1985, prohibited the importation of the South African Krugerrand into the United States, effective October 11, 1985 (50 Fed. Reg. 40325, Oct. 3, 1985). This implemented the course of action contemplated in Executive Order 12532. The Office of Foreign Assets Control of the Department of the Treasury issued South African Transactions Regulations on October 9, 1985 (50 Fed. Reg. 41682, Oct. 15, 1985), to implement the Krugerrand ban. There have been no changes in these regulations in the past six months.

In addition, the Bureau of Alcohol, Tobacco, and Firearms of the Department of the Treasury issued regulations on the Importation of Articles on the United States Munitions Import List on October 7, 1985, implementing the prohibition of certain arms imports contained in Executive Order 12532 (50 Fed. Reg. 42157, Oct. 18, 1985). The Department of State issued final regulations on South Africa and Fair Labor Standards on December 23, 1985, implementing the fair labor provisions of the Order (50 Fed. Reg. 53308, Dec. 31, 1985). The Office of Foreign Assets Control of the Treasury Department issued South African Transactions Regulations on November 6, 1985, implementing the Order's bank loan prohibition (50 Fed. Reg. 46726, Nov. 12, 1985). The International Trade Administration of the Department of Commerce issued regulations on Export Controls on the Republic of South Africa on November 14, 1985, implementing the computer and nuclear export prohibitions in the Executive Order (50 Fed. Reg. 47363, Nov. 18, 1985). With the exception of some minor technical amendments, there have been no changes in any of these regulations in the past six months.

With the publication of a notice in the Federal Register, the Department of State established the Advisory Committee on South Africa on October 22, 1985 (50 Fed. Reg. 42817, Oct. 22, 1985). The Committee has met several times since and shall render a report to the Secretary of State within one year of its first meeting, which was held on January 29 - 30, 1986.

The Secretary of the Treasury submitted a report on the feasibility of minting U.S. gold coins on November 8, 1985. On December 17 of that year, I signed the Gold Bullion Coin Act of 1985 (Public Law 99 - 185), requiring the minting of such coins.

The expenses incurred by the Federal government in the period from September 9, 1985, through September 8, 1986, that are directly attributable to the exercise of powers and authorities conferred by the declaration of the national emergency with respect to South Africa are estimated at $536,813, of which approximately $404,230 represents wage and salary costs for Federal personnel and approximately $132,583 represents out-of-pocket expenses. Personnel costs were largely centered in the Department of the Treasury, Department of State, Department of Commerce, and Department of Energy.

I shall continue to exercise the powers at my disposal to apply the measures contained in Executive Orders 12532 and 12535 as long as these measures are appropriate and will report periodically to the Congress on significant developments pursuant to Section 204(c) of the International Emergency Economic Powers Act.

Ronald Reagan

The White House,

September 25, 1986.